Freshtrop Fruits Buyback 2021

Freshtrop Fruits Ltd. has been a leading and consistent supplier of grapes and pomegranates from India to supermarkets in Europe for more than a decade.

Steadfast focus on quality and a systematic and thorough approach to food safety and traceability have been the directing forces for Freshtrop’s operations. The Company’s continuous efforts towards building and expanding relationships with growers have enabled it to become a dependable supplier of fresh produce.

Seeking to harness the existing backward linkages and with a view to bring the same high standards of quality and food safety to the processed domain, Freshtrop established a state-of-the-art juice processing plant at Nasik, Maharashtra, about 180 km from Mumbai in 2009.

Buy Back Offer Deal:

Buyback Type: Open Market
Buyback Offer Amount: ₹ 6.75 Crores
Date of Board Meeting approving the proposal: Jan 28 2021
Date of Public Announcement: Jan 28 2021
Buyback Offer Size: 9.73%
Price Type: Open Market
FV: 10
Buyback Price: ₹ 90 Per Equity Share

Details of Buyback:

The Buy-back of the Company's fully paid up equity shares having a face value of Rs. 10 (Rupee Ten Only) each (the "Equity Shares"), from the members of the Company (except promoters, promoter group and persons in control of the Company) at a price not exceeding Rs. 90/- (Rupees Ninety Only) per Equity Share ("Maximum Buyback Price"), and for an aggregate amount not exceeding Rs. 6.75 crores (Rupees Six Crore and Seventy Five Lacs only) ("Maximum Buyback Size"), which is less than 10% of the paid-up capital and free reserves of the Company as on March 31, 2020, from the open market through Stock Exchange mechanism.

Salient financial parameters:

Particulars(Cr) Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20
Sales 120 119 141 176 171 165
Expenses 104 104 125 159 152 154
Operating Profit 17 15 15 17 20 11
OPM % 14% 13% 11% 10% 12% 7%
Other Income 2 3 3 1 5 2
Interest 2 1 1 1 1 1
Depreciation 4 4 4 4 5 5
Profit before tax 12 13 14 13 18 6
Tax % 39% 36% 34% 38% 23% 23%
Net Profit 8 8 9 8 14 5
EPS in Rs 6.25 6.63 7.35 6.83 11.31 4.15
Dividend Payout % 16% 15% 0% 0% 0% 0%

How to Participate in buyback?

In this method of share Buyback, the company will be purchasing stocks from existing shareholders of the company directly from the market. Example: “Freshtrop Fruits Buyback 2021” announces the buyback plan of its shares up to the price of Rs 90, it means that the company will be purchasing shares of "Freshtrop Fruits" from the open market at a price not exceeding Rs.90 per share. Scenario 1- If the share price is below Rs.90 in that case, the company will put buy orders at the current market price and purchase shares. Scenario 2- If the share price is above Rs. 90, in that case, the company will put buy order at Rs. 90 only and if someone is ready to sell at Rs.90 then the only company will get back shares.

Profit from the buyback on the bases of acceptance Ratio:





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